Paramount Announces Third Quarter 2024 Results

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Insights

The Q3 2024 results reveal mixed performance with some concerning trends. Core FFO declined to $0.19 per share from $0.22 year-over-year, while net loss remained stable at $0.04 per share. The 1.8% increase in Same Store NOI is positive, but the 2.9% decrease in Cash NOI is concerning.

Leasing metrics show challenges with negative mark-to-markets: -4.2% on GAAP basis and -10.4% on cash basis. Occupancy declined significantly by 540 basis points to 84.7% from year-end 2023. However, the company's raised guidance suggests management's confidence in near-term performance improvement, with Core FFO now expected between $0.78 and $0.80 per share.

The leasing environment remains challenging, with 179,403 square feet leased at $84.55 per square foot. The negative mark-to-markets indicate continued pressure on office rental rates. Tenant improvements and leasing commissions at 10.7% of initial rent for Q3 deals are relatively modest for the current market, but the 14.7% for year-to-date deals suggests higher concessions were needed for earlier transactions.

The significant occupancy drop, largely due to Clifford Chance's departure, highlights the ongoing risks of major tenant exits in the office sector. The 8.1-year average lease term for new deals provides some stability but at the cost of lower rents.

10/30/2024 - 04:15 PM

– Raises Guidance for Full Year 2024 –

NEW YORK--(BUSINESS WIRE)-- Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 today and reported results for the third quarter ended September 30, 2024.

Third Quarter Highlights:

Results of Operations:

Reported net loss attributable to common stockholders of $9.7 million, or $0.04 per diluted share, for the quarter ended September 30, 2024, compared to $8.4 million, or $0.04 per diluted share, for the quarter ended September 30, 2023.
Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $40.5 million, or $0.19 per diluted share, for the quarter ended September 30, 2024, compared to $47.6 million, or $0.22 per diluted share, for the quarter ended September 30, 2023.
Raised its full year 2024 Earnings Guidance as follows:
- Estimated net loss attributable to common stockholders is expected to be between $0.09 and $0.07 per diluted share, compared to its prior estimate of $0.11 and $0.07 per diluted share, an increase in net income of $0.01 per diluted share at the midpoint from the Company’s prior estimate.
- Estimated Core FFO attributable to common stockholders is expected to be between $0.78 and $0.80 per diluted share, compared to its prior estimate of $0.76 and $0.80 per diluted share, an increase of $0.01 per diluted share at the midpoint from the Company’s prior guidance.
Reported a 1.8% increase in Same Store Net Operating Income (“NOI”) and a 2.9% decrease in Same Store Cash NOI in the quarter ended September 30, 2024, compared to the same period in the prior year.
Leased 179,403 square feet, of which the Company’s share was 115,026 square feet that was leased at a weighted average initial rent of $84.55 per square foot. Of the 179,403 square feet leased, 96,320 square feet represented the Company’s share of second generation space⁽¹⁾, for which mark-to-markets were negative 4.2% on a GAAP basis and negative 10.4% on a cash basis.

____________________________________________

⁽¹⁾Second generation space represents space leased in the current period (i) prior to its originally scheduled expiration, or (ii) that has been vacant for less than twelve months.

Financial Results

Quarter Ended September 30, 2024

Net loss attributable to common stockholders was $9.7 million, or $0.04 per diluted share, for the quarter ended September 30, 2024, compared to $8.4 million, or $0.04 per diluted share, for the quarter ended September 30, 2023.

Funds from Operations (“FFO”) attributable to common stockholders was $40.1 million, or $0.18 per diluted share, for the quarter ended September 30, 2024, compared to $46.7 million, or $0.21 per diluted share, for the quarter ended September 30, 2023. FFO attributable to common stockholders for the quarters ended September 30, 2024 and 2023 includes the impact of non-core items, which are listed in the table on page 10. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarters ended September 30, 2024 and 2023 by $0.4 million and $0.9 million, respectively, or $0.01 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $40.5 million, or $0.19 per diluted share, for the quarter ended September 30, 2024, compared to $47.6 million, or $0.22 per diluted share, for the quarter ended September 30, 2023.

Nine Months Ended September 30, 2024

Net loss attributable to common stockholders was $7.6 million, or $0.04 per diluted share, for the nine months ended September 30, 2024, compared to $54.2 million, or $0.25 per diluted share, for the nine months ended September 30, 2023. Net loss attributable to common stockholders for the nine months ended September 30, 2024 includes $14.1 million, or $0.07 per diluted share, of a non-cash gain on extinguishment of a tax liability related to the Company’s initial public offering. Net loss attributable to the common stockholders for the nine months ended September 30, 2023 includes (i) $23.1 million, or $0.11 per diluted share, for our share of a non-cash real estate impairment loss related to an unconsolidated joint venture, and (ii) non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the terminated SVB Securities lease at 1301 Avenue of the Americas and the surrendered JPMorgan Chase space at One Front Street.

FFO attributable to common stockholders was $142.6 million, or $0.66 per diluted share, for the nine months ended September 30, 2024, compared to $137.5 million, or $0.63 per diluted share, for the nine months ended September 30, 2023. FFO attributable to common stockholders for the nine months ended September 30, 2024 includes $14.1 million, or $0.07 per diluted share, of a non-cash gain on extinguishment of a tax liability related to the Company’s initial public offering. FFO attributable to common stockholders for the nine months ended September 30, 2023 includes non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the terminated SVB Securities lease at 1301 Avenue of the Americas and the surrendered JPMorgan Chase space at One Front Street. FFO attributable to common stockholders for the nine months ended September 30, 2024 and 2023 also includes the impact of other non-core items, which are listed in the table on page 10. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders for the nine months ended September 30, 2024 by $10.7 million, or $0.05 per diluted share, and decreased FFO attributable to common stockholders for the nine months ended September 30, 2023 by $1.9 million, or $0.01 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $131.9 million, or $0.61 per diluted share, for the nine months ended September 30, 2024, compared to $139.4 million, or $0.64 per diluted share, for the nine months ended September 30, 2023.

Portfolio Operations

Quarter Ended September 30, 2024

Same Store NOI increased by $1.6 million, or 1.8%, to $90.7 million for the quarter ended September 30, 2024 from $89.1 million for the quarter ended September 30, 2023. Same Store Cash NOI decreased by $2.6 million, or 2.9%, to $85.2 million for the quarter ended September 30, 2024 from $87.8 million for the quarter ended September 30, 2023.

During the quarter ended September 30, 2024, the Company leased 179,403 square feet, of which 133,091 square feet was leased in the Company’s same store portfolio. Of the 133,091 square feet leased, the Company’s share was 115,026 square feet that was leased at a weighted average initial rent of $84.55 per square foot. This leasing activity, offset by lease expirations in the quarter, decreased same store leased occupancy by 160 basis points to 84.7% at September 30, 2024 from 86.3% at June 30, 2024.

Of the 179,403 square feet leased in the third quarter, 96,320 square feet represented the Company’s share of second generation space for which mark-to-markets were negative 4.2% on a GAAP basis and negative 10.4% on a cash basis. The weighted average lease term for leases signed during the third quarter was 8.1 years and weighted average tenant improvements and leasing commissions on these leases were $9.03 per square foot per annum, or 10.7% of initial rent.

Nine Months Ended September 30, 2024

Same Store NOI decreased by $3.0 million, or 1.1%, to $275.5 million for the nine months ended September 30, 2024 from $278.5 million for the nine months ended September 30, 2023. Same Store Cash NOI decreased by $3.7 million, or 1.4%, to $261.5 million for the nine months ended September 30, 2024 from $265.2 million for the nine months ended September 30, 2023.

During the nine months ended September 30, 2024, the Company leased 654,625 square feet, of which 566,279 square feet was leased in the Company’s same store portfolio. Of the 566,279 square feet leased, the Company’s share was 444,140 square feet that was leased at a weighted average initial rent of $74.94 per square foot. This leasing activity, offset by lease expirations in the nine months, decreased same store leased occupancy by 540 basis points to 84.7% at September 30, 2024 from 90.1% at December 31, 2023. The decrease in same store leased occupancy was driven primarily by the scheduled expiration of Clifford Chance’s lease in June 2024 at 31 West 52nd Street in the Company’s New York portfolio.

Of the 654,625 square feet leased in the nine months, 290,157 square feet represented the Company’s share of second generation space for which mark-to-markets were negative 8.5% on a GAAP basis and negative 5.0% on a cash basis. The negative mark-to-market of 8.5% on a GAAP basis was driven primarily by a FAS 141 below-market lease adjustment that was included in the prior GAAP rent. Excluding the below-market lease adjustment from the prior GAAP rent, the mark-to-market on a GAAP basis would have been negative 3.4%. The weighted average lease term for leases signed during the nine months was 8.2 years and weighted average tenant improvements and leasing commissions on these leases were $11.02 per square foot per annum, or 14.7% of initial rent.

Guidance

The Company is raising its Estimated Core FFO Guidance for the full year of 2024, which is reconciled below to estimated net loss attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net loss attributable to common stockholders will be between $0.09 and $0.07 per diluted share, compared to its prior estimate of $0.11 and $0.07 per diluted share, an increase in net income of $0.01 per diluted share at the midpoint from the Company’s prior estimate. The increase in net income of $0.01 per diluted share resulted primarily from better portfolio operations. The estimated net loss attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

Based on the Company’s performance for the nine months ended September 30, 2024 and its outlook for the remainder of 2024, the Company is raising its Estimated 2024 Core FFO to be between $0.78 and $0.80 per diluted share, compared to its prior estimate of $0.76 and $0.80 per diluted share. This represents an increase of $0.01 per diluted share at the midpoint from the Company’s prior guidance, resulting primarily from better portfolio operations.

	Full Year 2024
(Amounts per diluted share)	Low			High
Estimated net loss attributable to common stockholders	$	(0.09	)	$	(0.07	)
Pro rata share of real estate depreciation and amortization, including the Company's share of unconsolidated joint ventures		0.92			0.92
Estimated FFO		0.83			0.85
Adjustments for non-core items⁽¹⁾		(0.05	)		(0.05	)
Estimated Core FFO	$	0.78		$	0.80

Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and otherwise to be referenced during the conference call referred to on page 7. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate related fund investments. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

_________________________

⁽¹⁾ Represents non-core items for the nine months ended September 30, 2024, that are listed in the table on page 10. The Company is not making projections for non-core items that may impact its financial results for the remainder of 2024, which may include unrealized gains or losses on real estate fund investments, acquisition and transaction related costs and other items that are not included in Core FFO.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms; dependence on tenants’ financial condition; the risk we may lose a major tenant or that a major tenant may be adversely impacted by market and economic conditions, including elevated inflation and interest rates; trends in the office real estate industry including telecommuting, flexible work schedules, open workplaces and teleconferencing; the uncertainties of real estate development, acquisition and disposition activity; the ability to effectively integrate acquisitions; fluctuations in interest rates and the costs and availability of financing; the ability of our joint venture partners to satisfy their obligations; the effects of local, national and international economic and market conditions and the impact of elevated inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; the negative impact of any future pandemic, endemic or outbreak of infectious disease on the U.S., regional and global economies and our tenants’ financial condition and results of operations; regulatory changes, including changes to tax laws and regulations; and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”), adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate related fund investments, unrealized gains or losses on interest rate swaps, severance costs, gains or losses on early extinguishment of debt and other non-core adjustments, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which include property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE’s share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at the property level.

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by the Company in a similar manner during both the current period and prior reporting periods and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

In the first quarter of 2024, we updated our presentation of NOI, Cash NOI and Core FFO attributable to common stockholders to exclude the impact of Market Center and 111 Sutter Street, which we have designated as “non-core” assets. Accordingly, we have recast the presentation for all prior periods presented to reflect this change.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended September 30, 2024, which is available on our website.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Thursday, October 31, 2024 at 10:00 a.m. Eastern Time (ET), during which management will discuss the third quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 1:00 p.m. ET on October 31, 2024 through November 7, 2024 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13749077.

A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Paramount Group, Inc.
Consolidated Balance Sheets
(Unaudited and in thousands)

Assets:	September 30, 2024			December 31, 2023
Real estate, at cost:
Land	$	1,966,237		$	1,966,237
Buildings and improvements		6,290,976			6,250,379
		8,257,213			8,216,616
Accumulated depreciation and amortization		(1,596,069	)		(1,471,819	)
Real estate, net		6,661,144			6,744,797
Cash and cash equivalents		318,725			428,208
Restricted cash		173,510			81,391
Accounts and other receivables		18,662			18,053
Real estate related fund investments		-			775
Investments in unconsolidated real estate related funds		4,607			4,549
Investments in unconsolidated joint ventures		128,919			132,239
Deferred rent receivable		355,555			351,209
Deferred charges, net		103,858			108,751
Intangible assets, net		54,125			68,005
Other assets		71,847			68,238
Total assets	$	7,890,952		$	8,006,215

Liabilities:
Notes and mortgages payable, net	$	3,674,367		$	3,803,484
Revolving credit facility		-			-
Accounts payable and accrued expenses		114,808			114,463
Dividends and distributions payable		-			8,360
Intangible liabilities, net		22,465			28,003
Other liabilities		27,906			37,017
Total liabilities		3,839,546			3,991,327
Equity:
Paramount Group, Inc. equity		3,173,867			3,203,285
Noncontrolling interests in:
Consolidated joint ventures		492,135			413,925
Consolidated real estate related funds		92,759			110,589
Operating Partnership		292,645			287,089
Total equity		4,051,406			4,014,888
Total liabilities and equity	$	7,890,952		$	8,006,215

Paramount Group, Inc.
Consolidated Statements of Income
(Unaudited and in thousands, except share and per share amounts)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenues:
Rental revenue	$	184,235		$	182,515		$	543,636		$	529,734
Fee and other income		10,664			6,666			27,548			20,583
Total revenues		194,899			189,181			571,184			550,317
Expenses:
Operating		80,316			75,502			226,248			216,889
Depreciation and amortization		60,071			60,263			182,920			181,778
General and administrative		16,672			15,460			49,938			46,307
Transaction related costs		242			132			843			323
Total expenses		157,301			151,357			459,949			445,297
Other income (expense):
(Loss) income from real estate related fund investments		(22	)		2,060			(92	)		(37,034	)
Income (loss) from unconsolidated real estate related funds		109			(721	)		199			(867	)
Loss from unconsolidated joint ventures		(981	)		(28,974	)		(3,098	)		(63,138	)
Interest and other income, net		3,517			4,115			26,830			10,007
Interest and debt expense		(43,805	)		(39,102	)		(124,078	)		(112,440	)
(Loss) income before income taxes		(3,584	)		(24,798	)		10,996			(98,452	)
Income tax expense		(619	)		(263	)		(1,328	)		(1,124	)
Net (loss) income		(4,203	)		(25,061	)		9,668			(99,576	)
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures		(6,959	)		(4,887	)		(18,434	)		(15,879	)
Consolidated real estate related funds		581			20,934			408			57,412
Operating Partnership		893			629			716			3,849
Net loss attributable to common stockholders	$	(9,688	)	$	(8,385	)	$	(7,642	)	$	(54,194	)

Loss per Common Share:
Basic	$	(0.04	)	$	(0.04	)	$	(0.04	)	$	(0.25	)
Diluted	$	(0.04	)	$	(0.04	)	$	(0.04	)	$	(0.25	)

Weighted average common shares outstanding:
Basic		217,314,706			217,043,022			217,208,809			216,871,778
Diluted		217,314,706			217,043,022			217,208,809			216,871,778

Paramount Group, Inc.
Reconciliation of Net (Loss) Income to FFO and Core FFO
(Unaudited and in thousands, except share and per share amounts)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Reconciliation of net (loss) income to FFO and Core FFO:
Net (loss) income	$	(4,203	)	$	(25,061	)	$	9,668		$	(99,576	)
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)		63,487			69,160			192,946			209,687
Our share of a non-cash real estate impairment loss related to an unconsolidated joint venture		-			-			-			24,734
Amounts attributable to noncontrolling interests in consolidated joint ventures and real estate related funds		(15,511	)		6,132			(46,981	)		12,533
FFO attributable to the Operating Partnership		43,773			50,231			155,633			147,378
Amounts attributable to noncontrolling interests in the Operating Partnership		(3,695	)		(3,510	)		(13,079	)		(9,861	)
FFO attributable to common stockholders	$	40,078		$	46,721		$	142,554		$	137,517
Per diluted share	$	0.18		$	0.21		$	0.66		$	0.63

FFO attributable to the Operating Partnership	$	43,773		$	50,231		$	155,633		$	147,378
Adjustments for non-core items:
Non-cash gain on extinguishment of IPO related tax liability		-			-			(15,437	)		-
Non-core assets ⁽¹⁾		-			(259	)		-			(3,535	)
Our share of realized and unrealized gains and losses from consolidated and unconsolidated real estate related funds		(26	)		735			101			7,047
Other, net (primarily adjustments related to unconsolidated joint ventures)		512			448			3,701			(1,535	)
Core FFO attributable to the Operating Partnership		44,259			51,155			143,998			149,355
Amounts attributable to noncontrolling interests in the Operating Partnership		(3,736	)		(3,574	)		(12,109	)		(9,996	)
Core FFO attributable to common stockholders	$	40,523		$	47,581		$	131,889		$	139,359
Per diluted share	$	0.19		$	0.22		$	0.61		$	0.64

Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		217,314,706			217,043,022			217,208,809			216,871,778
Effect of dilutive securities		14,505			32,676			36,985			21,638
Denominator for FFO and Core FFO per diluted share		217,329,211			217,075,698			217,245,794			216,893,416

⁽¹⁾Represents Market Center and 111 Sutter Street.

Paramount Group, Inc.
Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI
(Unaudited and in thousands)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Reconciliation of net (loss) income to Same Store NOI and Same Store Cash NOI:
Net (loss) income	$	(4,203	)	$	(25,061	)	$	9,668		$	(99,576	)
Adjustments to arrive at NOI:
Fee income		(6,776	)		(4,573	)		(17,328	)		(14,106	)
Depreciation and amortization		60,071			60,263			182,920			181,778
General and administrative		16,672			15,460			49,938			46,307
Loss (income) from real estate related fund investments		22			(2,060	)		92			37,034
Loss from unconsolidated joint ventures		981			28,974			3,098			63,138
NOI from unconsolidated joint ventures (excluding One Steuart Lane)		5,384			9,233			16,611			30,334
Interest and other income, net		(3,517	)		(4,115	)		(26,830	)		(10,007	)
Interest and debt expense		43,805			39,102			124,078			112,440
Income tax expense		619			263			1,328			1,124
Non-core assets ⁽¹⁾		-			(3,993	)		-			(14,286	)
Other, net		133			853			644			1,190
Amounts attributable to noncontrolling interests in consolidated joint ventures		(23,723	)		(22,275	)		(70,532	)		(67,551	)
PGRE's share of NOI		89,468			92,071			273,687			267,819
Non-same store adjustments:
Lease termination income		(1,204	)		(4,066	)		(3,177	)		(6,121	)
Non-cash write-offs of straight-line rent receivables		-			77			-			13,983
Other, net		2,435			982			5,038			2,805
PGRE's share of Same Store NOI	$	90,699		$	89,064		$	275,548		$	278,486

PGRE's share of NOI	$	89,468		$	92,071		$	273,687		$	267,819
Adjustments to arrive at Cash NOI:
Straight-line rent (including our share of unconsolidated joint ventures)		(2,191	)		(1,514	)		(6,694	)		(1,690	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(1,697	)		(2,110	)		(5,304	)		(6,187	)
Non-core assets ⁽¹⁾		-			606			-			1,166
Amounts attributable to noncontrolling interests in consolidated joint ventures		(1,470	)		1,755			(2,059	)		7,479
PGRE's share of Cash NOI		84,110			90,808			259,630			268,587
Non-same store adjustments:
Lease termination income		(1,204	)		(4,066	)		(3,177	)		(6,121	)
Other, net		2,329			1,012			5,003			2,775
PGRE's share of Same Store Cash NOI	$	85,235		$	87,754		$	261,456		$	265,241

⁽¹⁾Represents Market Center and 111 Sutter Street.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030238613/en/

Wilbur Paes

Chief Operating Officer,

Chief Financial Officer and Treasurer

212-237-3122

ir@pgre.com

Tom Hennessy

Vice President, Investor Relations and

Business Development

212-237-3138

ir@pgre.com

Media:

212-492-2285

pr@pgre.com

Source: Paramount Group, Inc.

FAQ

What was Paramount Group's (PGRE) net loss in Q3 2024?

Paramount Group reported a net loss of $9.7 million, or $0.04 per diluted share, in Q3 2024.

How much did Paramount Group (PGRE) revise its 2024 Core FFO guidance?

Paramount Group raised its 2024 Core FFO guidance to between $0.78 and $0.80 per diluted share, up from its prior estimate of $0.76 to $0.80 per share.

What was PGRE's Same Store NOI performance in Q3 2024?

PGRE reported a 1.8% increase in Same Store NOI and a 2.9% decrease in Same Store Cash NOI compared to Q3 2023.

How many square feet did Paramount Group (PGRE) lease in Q3 2024?

Paramount Group leased 179,403 square feet at a weighted average initial rent of $84.55 per square foot in Q3 2024.

Paramount Announces Third Quarter 2024 Results

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What was Paramount Group's (PGRE) net loss in Q3 2024?

How much did Paramount Group (PGRE) revise its 2024 Core FFO guidance?

What was PGRE's Same Store NOI performance in Q3 2024?

How many square feet did Paramount Group (PGRE) lease in Q3 2024?

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